Thursday, March 11, 2004

Terrorists Target Spain; Accused Iraqi Agent Arrested

Terrorists Target Spain; Accused Iraqi Agent Arrested

Aired March 11, 2004 - 22:00 ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

ANDERSON COOPER, CNN ANCHOR: And a good evening to you. I'm Anderson Cooper, in for Aaron Brown, who is on assignment right now in the Middle East.In Spain, they are calling it their 9/11, the worst terrorist attack ever within its borders, the worst in all of Europe since the bombing of Flight 103 over Lockerbie, Scotland. The scope and the M.O. of the attack sobering, 10 explosions on three commuter trains during the early morning rush hour in Madrid, all the bombs in backpacks. Tonight, the rescue work goes on as the questions pile up.Spain is where "The Whip" begins. And Christiane Amanpour, our Chief International Correspondent, starts us off with a headline -- Christiane.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: Anderson, the leaders of Spain are calling for mass rallies, a show of defiance against these killers. And, also, they're vowing never to surrender to what they're calling mass murder. 

COOPER: Back you shortly.Next to politics, rough-and-tumble, name-calling, rock-'em-sock- 'em politics with the prospect of eight months of it still to come. CNN's John King at the White House for us tonight -- John, the headline.

JOHN KING, CNN SR. WHITE HOUSE CORRESPONDENT: Anderson, first thing tomorrow morning, the Bush campaign launches its first attack ads of the general election. It accuses Senator John Kerry of wanting to raise taxes by more than $900 million, calls him wrong on taxes, wrong on defense. It's the earliest an incumbent president has ever gone on the air attacking his opponent. 

COOPER: Finally Boston and the legislative trench warfare on the question of same-sex marriage. CNN's Gary Tuchman on Beacon Hill tonight -- Gary, the headline. 

GARY TUCHMAN, CNN NATIONAL CORRESPONDENT: Well, Anderson, demonstrators are still on the streets of Beacon Hill, as Massachusetts legislators continue to argue about whether to overturn a court decision that legalized gay marriage. 

COOPER: All right, back to all of you in a moment. Thanks, Gary. Back to the rest of you. Also coming up tonight on the program, a $5 million payday for some victims of prosecution misconduct in a small Texas town by the name of Tulia. Later, we'll look at the big business in human body parts. That's right, I said human body parts. What really happens when you donate your body to science?And we'll go "On the Rise" with the young man who made a name for himself by selling his novel in a novel way, on the subway. All of the ahead.We begin with the devastating day in Madrid. At least 192 people are dead, 1,400 wounded. The question of responsibility lingers in the air, though Spanish officials believe they have a chief suspect, but questions, too, about that. Here, again, CNN's Christiane Amanpour 

(BEGIN VIDEOTAPE) 

AMANPOUR (voice-over): For the Spanish, Atocha is now a station of horror. At 7: 30 this mornings, the young and the old were heading into school and to work when massive explosions ripped great holes into their commuter train. 

UNIDENTIFIED FEMALE (through translator): I could hear people screaming. I don't know. It's something that I can't explain. I will not recommend it to anybody. 

AMANPOUR: Suddenly, in central Madrid, there were makeshift morgues flooded with desperate families. Mobile phones of the dead could still be heard ringing. Hearses wound through the streets, carrying bodies away from the carnage. Ordinary citizens lined up to donate blood. It is as close to a war zone as this generation has seen. 

UNIDENTIFIED MALE (through translator): I saw dramatic scenes of people covered in blood. 

AMANPOUR: You knew the remains of a woman lay here by the stilettos that poked from the blanket. Elsewhere, limbs severed from torsos lay in pools of blood. And even the very young joined in hauling away the dead and wounded. Spanish officials say ETA, the armed Basque separatist group, is their prime suspect for now. But they say they have found detonators and a tape of Koranic versus in a van near the commuter route. 

UNIDENTIFIED MALE (through translator): Because of this, I have just given instruction to the security forces not to rule out any line of investigation. 

AMANPOUR: The Spanish royal family went to hospitals consoling victims and the king called for unity. 

JUAN CARLOS, KING OF SPAIN: In these moments of immense pain, Spaniards have been called to once again reaffirm our determination to end violence and terrorism. 

(END VIDEOTAPE) 

AMANPOUR: Now, last time the Spaniards turned out in massive show of defiance was in 1997, when ETA kidnapped and then shot a councilman. Six million Spaniards turned out to demonstrate against this kind of violence. And the authorities here are saying that, ever since then, ETA has mostly been on its hind legs. The authorities feel that they had really cracked down on ETA and its ability to kill and create mayhem had been severely disrupted over the last several years. Now they're saying they feel they have forensic evidence that leads them to ETA. They're also saying that this shows that ETA was trying to make one last show of strength and get back into the game, but at the same time, as we've reported, there may be another line of investigation into just what was that van with the detonators in it and the tapes of those Koranic verses -- Anderson.

COOPER: Christiane, I'm not sure if in past attacks ETA has claimed credit, if that's the right word. I'm not sure if that's their M.O. This time, have they made any kind of a statement? 

AMANPOUR: Well, a lot of people were saying this couldn't be ETA because nobody claimed -- rather, nobody sent out any warnings. But, in fact, authorities say that ETA has, in it past, committed these kind of murders either warning in advance or not warning in advance. But ETA itself, the Basque separatist group, which is, in fact, a terrorist organization, designated, has not claimed responsibility. And the political wing of ETA, a spokesman for that group, which has also been banned, has said that it could not be ETA, that this is simply not something that it would do. But I must say, the Spanish authorities were very emphatic early on and even tonight continue to be emphatic that they remain the prime suspects, but there are, as you say, all these questions about the incredible scope and the magnitude of this attack, which bears more similarities to the attacks that al Qaeda and other Islamic groups have committed recently than those that ETA have been capable of mounting. 

COOPER: All right, Christiane Amanpour, thank you very much, live from Madrid. As Christiane said, a lot of questions tonight still unanswered. Jim Walsh is a terrorism and international security analyst and Harvard's Kennedy School of Government.We are pleased he joins us now. Jim, good to see you. Sorry it's under these circumstances.What is it that points away from ETA? Is it just the simultaneous attack, 10 bombings, 10 backpacks? 

JAMES WALSH, KENNEDY SCHOOL OF GOVERNMENT: No, it's more than that, Anderson. If ETA is responsible for this, there are a number of puzzles. First of all, this would be the biggest ever attack by ETA in the history of the group going back to 1959. And most observers believe that ETA was, as Christiane has said, on the defensive. It had taken several hits particularly since 9/11. Since 9/11, it had been labeled a terrorist group by the European Union, by the United States. There were increased and coordinated police actions against it.And even just last month, there were police actions that arrested ETA members and over 1,000 pounds of explosives. So, if they were responsible, it does raise the question about how could they do such a large attack, when they've never done so before and now, particularly, since they seem to be on the defensive. 

COOPER: And speaking for it being an attack by al Qaeda or an al Qaeda-linked group or al Qaeda sympathetic group, are what? There's the simultaneous attacks, the scope of the attacks, some 10 bombing. And I guess there was statement from or alleged statement from bin Laden several months ago in which they directly referenced Spain. Are those sort of the main factors? 

WALSH: Those are all circumstantial bits of evidence that would point you in the direction of al Qaeda. I would add to that, however, you also have Spain, which has been a major and very visible ally of the United States in Iraq and elsewhere. Al Qaeda has mentioned Spain, along with other countries as potential targets because of its support of the U.S. position and the geography of Spain. If you look at a map, it is only spitting distance from Morocco to Spain and, of course, we had attacks in Morocco, as well as Saudi Arabia from al Qaeda-linked groups earlier. So geography, motivation and the factors you name are all reasons to also suspect al Qaeda. And I'll simply end by saying it, of course, might be -- and this would be quite unprecedented -- but it might be combination of the two. 

COOPER: And, as you mentioned, I was reminded of something else. There is the Andalucia region of Spain, which I think there is historical ties to some -- Islamic religious groups are saying they want the region to secede based on their interpretation of history.You mentioned the idea of possible linkage, though. How realistic is that? If al Qaeda is on the run being monitored, how likely is it that they would reach out or be even able to reach out to a group like ETA? 

WALSH: Well, on the face of it, you'd have to be skeptical about some kind of collusion between ETA and al Qaeda. They're different groups. ETA is motivated by separatists. Desire is really culturally and geographically driven, whereas al Qaeda is religiously driven and focused in other areas. But they share in this particular case a common enemy, which would be the Spanish government. So there's a possibility there. And also, it has to be said that al Qaeda is morphing. It used to be the organization, the international organization engaging in terrorism, and everyone else sort of engaged in local terrorism over local issues.Well, according to the director of the CIA in testimony last week, al Qaeda has changed. It has morphed into what is now, in the words of the CIA director, a movement in which there are local groups that are affiliating and working autonomously with al Qaeda. We have had attacks in Saudi Arabia when there were never attacks before. We had attacks in Morocco when there were never attacks before. And now we have an attack in Spain. It is not implausible that there might be some combination there. But, again, I think we ought to let investigators do their work and let the facts speak for themselves. 

COOPER: And what -- a lot of investigators I've talked to in the past have talked about, in particular those Morocco attacks, the notion of there being some al Qaeda sympathetic group, which may be a wanna-be group and is doing this to prove some kind of point. Of course, it's all at this point just hearsay. I should point out for our viewers, there was a claim of responsibility e-mailed to a newspaper, an Arabic-language newspaper in London. But a lot of people discount that group because they have claimed credit for a lot of things, including the blackouts here in New York last summer. So you don't put much credence in that, do you? 

WALSH: I don't.I think we need to wait and collect a little more evidence. But let me tell you, Anderson, in either case, it's a noteworthy story. Whether it's ETA or whether it's an al Qaeda group or an al Qaeda-linked group or some cooperation between the two, this is a major story that has major implications for our struggle for terrorism. If it's ETA, it means, wow, these guys are escalating at a time when we thought they were in a weaker position. If it's al Qaeda, it means, my gosh, these guys are splintering into little al Qaedas around the globe. And that is troubling as well.

COOPER: And it's not just a major story. It's also a very human story, 192 lives lost, more than 1,000 injured right now. Jim Walsh, appreciate you joining us. Thank you very much. It's good to talk to you. 

WALSH: Thank you, Anderson. Have a good night. 

(CROSSTALK) 

COOPER: Good night to you.We said at the top of the program that there are more questions here than answers. Certainly, that is true, except perhaps where railroad security in this country is concerned. When it comes to taking the train, critics say the answer is in fact chillingly simple about train security. What security, they say. Here's CNN's Jeanne Meserve. 

(BEGIN VIDEOTAPE)

JEANNE MESERVE, CNN CORRESPONDENT (voice over): Could this happen here? 

UNIDENTIFIED MALE: Certainly it could. 

MESERVE: The signs at the Amtrak counter say I.D.s are required to buy a ticket. But no one checked mine just hours after the attack in Spain. As for my bag, there was no screening of any type. In many places, there is easy access to rail tracks and often to rail cars, which then travel past major population centers and critical infrastructure. 

SEN. JOSEPH BIDEN (D), DELAWARE: There really is no American train security. 

MESERVE: The rail industry says the sheer numbers makes screening of passengers and baggage impractical. 

UNIDENTIFIED MALE: To put it in perspective, every day, two million Americans use the airline system, and 32 million times a day Americans use our public transit systems. So 16 times more. 

MESERVE: Since 9/11, rail systems have deployed more bomb- sniffing dogs. There are more cameras, more police. The industry also has a 24-hour information sharing and analysis center, or 

ISAC, which receives and shares information on terrorist threats. 

UNIDENTIFIED MALE: And then it's a sift and sort process to try to determine what of that information that's out there about the incident has taken place would be valuable. 

MESERVE: The federal government says one of its accomplishments is sharing timely threat information with the rail industry. But this morning, the ISAC analysts found out about the Madrid train bombing from local news radio. (on camera): The industry faults government for not making rail security a priority. Since 9/11, rail systems around the country have received grant money worth about $100 million. Aviation, in contrast, has received $11. 8 billion. Jeanne Meserve, CNN, Washington. 

(END VIDEOTAPE) 

COOPER: Well, from terror, we move on to politics. March is supposed to come in like a lion, the saying goes, and go out like a lamb. But weather and politicians also defy predictions. When the Bush-Cheney launched its first televised ads last week, they ignited quite a debate over using those images from 9/11. But they were tame on the attack front. They did not even mention Mr. Bush's presumptive opponent, John Kerry. The lamb was fleeting. Today, the lion roared. Here's CNN's White House correspondent John King. 

(BEGIN VIDEOTAPE) 

KING (voice-over): At the groundbreaking of a 9/11 memorial on Long Island, 30 months to the day after the terrorist attacks, solemn at this event, but on the attack in new TV ads. In one, Mr. Bush himself suggests Senator Kerry is not up to the terrorism challenge. 

BUSH: We can go forward with confidence, resolve and hope, or we can turn back to the dangerous solution that terrorists are not plotting and outlaw regimes are no threat. 

KING: The second new Bush ad take much sharper aim, saying a Kerry presidency would mean at least $900 billion in new taxes and less resolve on the war in terror. 

NARRATOR: And he wanted to delay defending America until the United Nations approved. John Kerry, wrong on taxes, wrong on defense. 

KING: The Kerry campaign challenged the accuracy of the Bush ads. The senator himself took issue with their tone. 

SEN. JOHN KERRY (D-MA), PRESIDENTIAL CANDIDATE: There is a Republican attack squad that specializes in trying to destroy people and be negative. I think the president needs to talk about the real priorities of our country. 

KING: The Bush campaign says taxes and terrorism are top priorities, and said if Senator Kerry takes issue with the $900 billion figure, he should spell out just how he would pay for his promises on other health care and other issues. The intensity of the campaign is extraordinary for March. The economy now a daily focus of the slugfest. 

BUSH: Did you hear we're going to repeal the tax cut? That's Washington, D.C. code for I'm fixing to raise your taxes. That's what that means. 

KING: Senator Kerry pounced on word the president's choice to serve a new post of manufacturing was in trouble, suggesting he knew why. 

KERRY: It turns out that the person they choose had cut the work force by 17 percent and built a plant in China. 

KING: Administration officials called that attack unfair, but late Thursday, businessman Tony Raimondo withdrew his name from consideration. 

(END VIDEOTAPE) 

KING: The Bush attack ads represent the earliest date at which an incumbent president has gone on television to attack his opponent. The Kerry campaign plans a response as early as tomorrow morning, Anderson, escalating the tension in what is already a rough-and-tumble campaign, still eight months to the election. 

COOPER: Yes, it's amazing when it is so far away and the tone of it already. These attack ads, as you call them, they're different than these Internet ads which have been running obviously on the Internet, which have a more aggressive tone than the other commercials we've seen on TV, right?

KING: It is more dangerous to go negative on television, because more people see it. Your own supporters tend to look at your Internet ads, as opposed to the mass audience. It is very dangerous to launch negative ads because you run the risk of your own unfavorable ratings going up. So the fact that the president is going on the attack -- his campaign calls them contrast ads, not negative ads. But the fact that he is going on the attack and spending millions to do so, so early is clear proof that the Bush campaign believes it needs to take Senator Kerry down a notch and do so now. 

COOPER: Contrast ads, I like that.All right, John King, thanks very much. Republicans also took John Kerry to task today for calling some of his opponent liars and crooked. Senator Kerry of course made the comments yesterday in a candid moment on the campaign trail. Today, he stood by those words. He also reached a milestone of sorts, call it presumptive-plus. It won't be official until the Democratic Convention, but, for all practical purposes, John Kerry locked in his party's nomination today, a survey by CNN's political unit showing he now has the magic number of delegate votes, 2,162.Here's CNN's Bob Franken. 

(BEGIN VIDEOTAPE) 

BOB FRANKEN, CNN NATIONAL CORRESPONDENT (voice-over): John Kerry on the day he clinched his party's nomination, has done something exceedingly bipartisan. He has thrown red meat to Democrats and Republicans alike. 

REP. TOM DELAY (R), MAJORITY LEADER: To call people liars and crooks and, particularly, in thinking that you were off mike, just shows you who the real person is. Not the person that is set up and coifed for a town meeting or speech, but the real person. And I think America got a glimpse of the real John Kerry. 

FRANKEN: The real John Kerry was cruising from one happy meeting of unifying Democrats to another, while Republicans demanded an apology. 

KERRY: I have no intention whatsoever of apologizing for my remarks. I think the -- I think the Republicans need to start talking about the real issues before the country. 

FRANKEN: In fact, the many Democrats who believe their politicians have so often rolled over and played dead in the face of Republican attacks are delighted at all this. 

MICHAEL MEEHAN, SR. ADVISER, KERRY CAMPAIGN: We're going to fight back, absolutely. We're going to spend the next eight months fighting back on that. 

FRANKEN (on camera): It looks like Democrats and Republicans alike are about to heed the challenge and bring it on. Bob Franken, CNN, Washington. 

(END VIDEOTAPE) 

COOPER: Ahead on the program tonight, were the Iraqis spying on America? Is that even possible? That's the allegation, as an American woman is under arrest for being an Iraqi agent. A remarkable story, that.And later, we'll go "On the Rise" with a young author who is making his way to the top one book at a time. From New York, this is NEWSNIGHT. 

(COMMERCIAL BREAK) 

COOPER: Well, it would be hard to imagine Americans spying for Japan after Pearl Harbor or passing secrets to the Soviet Union at the height of the Cold War, but they have, and vice versa. And the reason is simple. Whether it's for love or money or reasons unknown, you can always find someone, even if you're Saddam Hussein and the someone happens to be American. That's allegation, at least right now, the charge leveled today at a woman with connections all across official Washington. Here's CNN's Kelli Arena.

(BEGIN VIDEOTAPE) 

KELLI ARENA, CNN JUSTICE CORRESPONDENT (voice-over): Susan Lindauer, a former journalist and congressional aide, was arrested in Tacoma Park, Maryland, for allegedly acting as an Iraqi agent. 

SUSAN LINDAUER, DEFENDANT: I'm an anti-war activist and I'm innocent. 

ARENA: An indictment says Lindauer had repeated contacts with Iraqi intelligence officers in New York and Baghdad between 1999 and 2002 and conspired with two sons of Iraq's former liaison with U.N. weapons inspectors. Lindauer says she was trying to get inspectors back into Iraq. 

LINDAUER: I am very proud and I will very proudly stand by my achievements. ARENA: In January 2003, two months before the U.S. invaded Iraq, prosecutors say she took a letter to the home of a U.S. official saying she had access to Saddam Hussein's regime. Sources tell CNN that official was White House Chief of Staff Andrew Card, Lindauer's second cousin. The White House says Card never met with Lindauer and called the incident very sad. 

LINDAUER: I'm an anti-war activist. 

ARENA: Sources say Card alerted authorities. Then the FBI set up a sting operation. In June, prosecutors say, Lindauer met an undercover FBI agent posing as an agent for Libyan intelligence looking to support resistance groups in postwar Iraq. And near her home in Tacoma Park, they say she followed instructions to leave unspecified documents at dead-drop locations. Neighbors were surprised. 

UNIDENTIFIED MALE: She was a Tacoma Park-type person. They're pretty unique around here. We're a nuclear-free zone, as you know, so a very laid-back, liberal sort of person. 

ARENA: Prosecutors say Iraq paid Lindauer $10,000 for expenses and services. She faces up to 25 years in prison if she's convicted on all charges. 

LINDAUER: This is what democracy is all about. 

ARENA: Kelli Arena, CNN, Washington. 

(END VIDEOTAPE) 

COOPER: A few more stories now from around the world, starting with the late terrorist Abul Abbas. He died in U.S. custody earlier this week. Today, results, an autopsy show he died of heart disease, hardened arteries. His widow and others claim he was assassinated and they're calling the autopsy a whitewash. They're calling for an independent investigation. Haiti next and more violence there, two people killed in a shoot- out between police and a mob in Port-au-Prince. U.S. marines who were patrolling nearby did not take part. Haiti's deposed president, meantime, says he'll fly shortly to Jamaica for a visit. He's been staying in the Central African Republic since fleeing the country nearly two weeks ago And President Clinton's impeachment was, well, nothing like this. Take a look. This is South Korea's National Assembly shortly before lawmakers to impeach the president on a number of charges, including illegal electioneering and incompetence. Ultimately, the measure passed. The president's case now goes before a constitutional court and in the meantime he loses most of his official powers. Coming up on NEWSNIGHT, the struggle continues as the Massachusetts legislature meets again on the gay marriage issue. But has anything really been resolved? Around the world, this is NEWSNIGHT. 

(COMMERCIAL BREAK) 

COOPER: In Massachusetts today, lawmakers tried to unring the bell rung by the commonwealth's highest court on the question of same- sex marriage. Late last year, the court struck down a marriage ban. Earlier this year, legislatures tried and failed to agree on a constitutional amendment. Now, today, with the deadline in the distance and protesters a lot closer than that, they tried again and agreed, not to marriage, yes to civil unions.Here again, CNN's Gary Tuchman. 

(BEGIN VIDEOTAPE) 

UNIDENTIFIED MALE: The joint session will come to order. 

TUCHMAN (voice-over): Two hundred Massachusetts state representatives and senators considering whether to amend their state constitution to ban same-sex marriages. 

SHIRLEY OWENS HICKS (D), MASSACHUSETTS STATE REPRESENTATIVE: I believe the Bible and I also believe the American Heritage Dictionary. And each of these books defines marriage as a union between a man and a woman. 

TUCHMAN: That is not the view of the state's highest court, which ruled in November that same-sex marriages in Massachusetts can occur as early as May 17. And that decision proved to be the impetus for this constitutional convention, which gay marriage supporters did not want to see happen. 

THEODORE SPELIOTIS (D), MASSACHUSETTS STATE REPRESENTATIVE: I worked too hard to get this job and to stay in this job to vote in a fashion that tells an entire segment of my population that they're different and they're not accepted. 

TUCHMAN: Thousands of demonstrators on both side of the issue gathered inside and outside the state Capitol. The demonstrators included parochial school students on field trips. 

UNIDENTIFIED FEMALE: They know that they need a mom and a dad at home, not a dad and a dad. 

TUCHMAN: Families also turned out. 

UNIDENTIFIED FEMALE: There wouldn't be a vote to take away any other kind of civil right and there shouldn't be a vote to take away gay and lesbian rights. 

UNIDENTIFIED FEMALE: One man, one woman. Let the people vote it out. It's all about America! 

TUCHMAN: The measure the politicians are considering would ban gay marriage, but allow so-called civil unions. But under Massachusetts law, if it passes, it has to be approved by the legislature again next year and then would have to come up for a statewide referendum in November 2006. 

(END VIDEOTAPE)

TUCHMAN: Which means that, no matter what happens in the state Capitol tonight -- And the legislators are still arguing -- gay couples will be able to start getting married here in Massachusetts in less than 10 weeks and will be able to continue getting married for at least 2 1/2 years. But there is still some confusion. There is an obscure 1913 law that was passed here in Massachusetts that does not allow out-of-state people to get married in Massachusetts if their state says they would not be able to get married back home. So, therefore, since marriage is illegal in 49 other states, it's not clear what will happen if people come from out of state to get married here in Massachusetts. And, Anderson, one thing we want to mention, an apparent coincidence, May 17, 2004, the first day of marriage here in Massachusetts, is the 50th anniversary of the U.S. Supreme Court decision Brown vs. Board of Education, which desegregated the schools -- Anderson.

COOPER: All right, Gary Tuchman, thanks very much for that. Three time zones away, another reversal of fortune. California's Supreme Court ordered the city of San Francisco to stop issuing marriage licenses to same-sex couples. That said, the court declined to rule on the central issue, the matter of whether laws banning gay marriage do in fact discriminate. So far, about 3,700 couples have gotten married since the mayor of San Francisco got the whole ball rolling last month.The National Hockey League dropped the hammer on a brutal hitter, suspended Todd Bertuzzi for the rest of the season for the sucker- punch that broke an opponent's neck. There it was. His team, the Vancouver Canucks, has been fined $250,000 and police have launched a criminal investigation into the whole affair. Finally, the Food and Drug Administration today ordered a performance-enhancing drug off the market. Andro, it's called, a steroid precursor. The body turns it into testosterone. But until today, you could buy it without a prescription. Big-name athletes use it to bulk up, apparently. But because it acts like a steroid and comes with many of the same side effects, the government called it too risky to be sold. Still to come on the program, we'll revisit a story we followed for months, the story of a police investigation run amuck in a small Texas town and what the cost has turned out to be. This is NEWSNIGHT. 

(COMMERCIAL BREAK) 

COOPER: Eight years ago, after being accused and cleared of racketeering, Ronald Reagan's former labor secretary was heard to ask, "Where do I go to get my reputation back?" And that was only his reputation.Dozens of people in a small Texas town lost more than that, 45 people in all, most of them African-American. They were arrested, tried and sent to prison on drug charges, largely on the word of a rogue officer. They were freed last year, you may remember, an investigation launched, a lawsuit filed and today, a monetary settlement made public. From Tulia, Texas, CNN's Ed Lavandera. 

(BEGIN VIDEOTAPE) 

ED LAVANDERA, CNN CORRESPONDENT (voice-over): Joe Moore spends most days just driving around Tulia, the West Texas town he's called home since 1956. 

JOE MOORE, TULIA RESIDENT: That's what I really enjoy about this town, really. I've been doing it so long. 

LAVANDERA: Since Moore was released from prison last summer, he's been living on a $500-a-month disability payment. But for the four years he wrongly spent in prison, Moore and 44 others are about to receive their apologies in cash, $5 million for the group known as the Tulia 45. 

MOORE: It won't change me. I know. And that's something I know.

LAVANDERA: Kizzie White was also imprisoned in the now infamous Tulia drug sweep that ended up in 10 percent of the town's black population being arrested. She is just happy to be around her two children again and is anxiously awaiting her third child. 

KIZZIE WHITE, TULIA RESIDENT: I'm just trying to live life, because no matter how much money they five me, like I said, it is not bring back those four years. 

LAVANDERA: The $5 million settlement is being paid by the city of Amarillo, one of 29 agencies in a drug task force that supported the work of undercover officer Tom Coleman. The Tulia 45 drug cases were built solely on Coleman's word.But his investigative work has now been thoroughly discredited and he faces charges on perjury charges for his role in those cases. Coleman maintains he did nothing wrong. One of the attorneys representing the Tulia 45 says he's negotiating settlements with the other agencies around the Texas Panhandle. 

JEFF BLACKBURN, ATTORNEY: Everybody that was part of this operation shares in blame for what happened in Tulia, because they had the ability to say no. They had the ability to supervise. They had the duty to regulate what happened there and they didn't do it. 

LAVANDERA: Joe Moore says, no matter how much money he ends up with, it won't change his life much. He plans on spending the rest of his days driving the back roads of Texas enjoying the wide open space of freedom. Ed Lavandera, CNN, Tulia, Texas. 

(END VIDEOTAPE) 

COOPER: Our "Moneyline Roundup" tonight begins with Martha Stewart the brand. Now that Martha Stewart is presumably heading up the river, are sales of her products up the creek, too? So far, answer is no. And so far, the stores that sell Martha's products say they're planning no big changes in buying or merchandising, at least not yet. Signs of life at Ford. The company plans once again to match 401(k) contributions for middle and upper management. Bonuses are also on the way back. Wall Street, on the other hand, had a grim day, big losses in all the major indices, with blue chips leading the way. Ahead on the program tonight, the big business in bodies, human bodies and what you do and don't know about what happens to you when you donate your body to science. 

(COMMERCIAL BREAK) 

COOPER: So, two scandals this week have pulled back the curtain on an intersection of science and commerce that usually escapes public scrutiny, our scrutiny, at least. Both scandals involve the illegal sale of cadavers. Two universities are in the spotlight. At UCLA, an employee and others outside the university are accused of profiting from the sales. At Tulane, the problem is what happened to the bodies after they were given to a third party, a middleman. Both stories began with acts of goodwill, with thousands of people who donate their bodies to science each year. What happens next is, well, less certain. Here's CNN's Christy Feig. 

(BEGIN VIDEOTAPE) 

CHRISTY FEIG, CNN MEDICAL CORRESPONDENT (voice-over): About 150 medical schools and other programs across the country actively seek donated bodies. They're used for teaching anatomy to medical students. 

DR. RAY MITCHELL, DEAN, GEORGETOWN SCHOOL OF MEDICINE: We learn from our patients, but I think we do begin that sacred journey with a relationship with a cadaver. And I believe it is still -- at this point, I think it has an important role, a critical role in medical education. 

FEIG: Like many schools, the Georgetown University School of Medicine needs about 50 bodies every year and they say they don't usually have a surplus, but cadavers are also needed for tissue banks. 

BOB RIGNEY, AMERICAN ASSOCIATION OF TISSUE BANKS: Muscular, skeletal tissue, which would include bones and ligaments and tendons, cardiovascular tissue, which would include heart valves and veins and skin, which is used primary for burn victims. 

FEIG: Altogether, only about 20,000 bodies are donated every year for an estimated one million procedures. Once a family has donated a body, the organization has broad flexibility. It can be used for research or sent to organ clearinghouses. Tissue for banks usually needs to be retrieved within 24 hours, and there's little regulation. Those who rely on donated bodies are concerned recent reports could dry up supplies and some could die waiting for tissue. 

RIGNEY: Some of the surgeries can be postponed. Some can't. For the burn victims who need, you know, human skin to allow them to -- for their bodies to regenerate additional skin, for those who need, you know valve transplants. 

FEIG (on camera): Like organs, it's illegal to sell human tissues for transplant. But nonprofit organizations can charge handling fees. And, in a business where demand far exceeds supplies, those fees can often mean big bucks. Christy Feig, CNN, Washington. 

(END VIDEOTAPE) 

COOPER: Well, the market that exist for human body parts, generally speaking, serves a public good. It supplies life-saving materials. It improves quickly of life for many sick people. There is measurable good that comes from it. But it is also where ethics bump up against economics and where oversight is scant. Dr. Arthur Caplan has spent a lot of time thinking about these issues. He's is the director of the Center For Bioethics at the University of Pennsylvania and joins us now from Philadelphia. Doctor, thanks for being with us. 

DR. ARTHUR CAPLAN, DIRECTOR, CENTER FOR BIOETHICS: Hi, Anderson. 

COOPER: So, you donate your body to science. It goes to one of these 150 or so centers, mostly at universities, and then is it fair, then, just all hell breaks loose, just about anything can happen to it? 

CAPLAN: Well, I think, normally, people are pretty careful and conservative about what they do. And they keep the body at the school. They use it for anatomy class. That's the basic use. Some dentists, some nurses might study it.But if you have sleazy operators down there in the morgue, they may have people approaching them saying, hey, before you send that body up to anatomy class, how about you sell me that knee or sell me that elbow or I'll take a piece of that bone and we can both make some profit here?

COOPER: And these sleazy people trying to purchase these things through these sleazy middlemen, they are whom? They are corporations? They are companies looking for things to do research on? Who are they? 

CAPLAN: Well, the ultimate sort of users are, you have people who need human tissues to demonstrate how particular devices might work. So if I'm making some pins and nails that I need to staple together a back procedure, I might need some spines. You have collectors out there who literally collect human parts. You have some people out there who want to use these body parts for medical research that involves, let's say, weapons research or automobile accidents. So there's a whole array of folks who might use this stuff. 

COOPER: And they're willing to pay for it, obviously.

CAPLAN: They're willing to pay for it. It goes to these sleazy middlemen down 

(CROSSTALK) 

COOPER: Some of the money may go up to the university, if the university has surplus bodies. Once of the guess I've always complained about is, when we take these donations at universities, we should be saying, we'll keep it here, we're not going to send it anywhere else. But in the Tulane down in New Orleans, they did sell some bodies out to the Army. COOPER: Right. And they sold bodies -- and that's sort of a different thing. The sold bodies out to the Army. And the Army then used them to basically blow up. 

CAPLAN: Correct. They were using them to try and understand how land mines -- you might protect your legs against injury from land mines. So they were basically testing them for protective gear. 

COOPER: So, in your opinion, from an ethics standpoint, what's wrong with this, that the families don't know where the bodies end up? 

CAPLAN: You have three basic problems.One, the families don't know what ultimately is going to happen. That's unacceptable. You should always know what research or what purpose your gift is going to be put to. Second, the user should have liability. If you take these bodies, these tissues, these parts, you should be responsible if they were collected with donation. And, third, no one is watching the licensing of the people who come and make the requests. In organ donation, kidneys and hearts, it's a whole formalized system, formal rules. Tissue donation, body parts, no one is kind of regulating, no one is watching who it is that comes in and collects these things. COOPER: So there's not even really a tracking system with some of these 

(CROSSTALK) 

CAPLAN: There isn't. And, again, if we have hearts and livers and lungs, we know where they go, very tightly regulated system. We should be doing the same thing for the cadavers. 

COOPER: And, of course, the real -- not the real, but one of the many dangers of this is that then people hear these stories, they see this report, and then they think, well, I don't want to end being blown up by the military. I'm not going to donate my body to science. 

CAPLAN: And I want to be clear. When it comes to hearts, livers, kidneys, the organs that we hear about the most, that system is tightly regulated. There are no scandals there. You sign that donor card or check off your driver's license, you're going to have that organ handled in a responsible way.It's this sort of tissue, corpse, cadaver side that needs the regulation. We have got it done for organs. There's no reason at all we can't extend that system out to cadavers. 

COOPER: And so you're saying the primary responsibility, I guess it really should be shared by the universities who want to track these things, but also by people who are trying to get these things from the universities. 

CAPLAN: Well, if a company needs a knee because it needs to teach doctors how to do a procedure on a knee or a dental company wants to do tooth implants and needs jaws to practice on, OK, as long as you understand that that is what your body might be used for and you consent to that, that's great. If they get these things on the black market or off the books, then I think they should be responsible. We don't let sneaker companies get away with saying, hey, there is child labor, but we didn't know about it. We hold them responsible for making sure that, if they use cheap labor overseas, they have got to be accountable. The same thing should be true for these companies that use cadaver body parts.

COOPER: All right, Dr. Arthur Caplan, appreciate you joining us. Thanks.

(CROSSTALK) 

CAPLAN: My pleasure. 

COOPER: Still ahead on NEWSNIGHT, we'll go "On the Rise" and meet a young man making his mark in the publishing world in quite a way. Stay with us. 

(COMMERCIAL BREAK)

COOPER: We sometimes hear about struggling musicians who are discovered while performing in the subway. A record producer happens along and a recording contract soon follows. This is wrinkle on that fairy tale ending. The star isn't a musician, but hip-hop is his muse. He wrote a novel about it, one of the first hip-hop novels ever published. But how it got published and how this 24-year-old writer came to be "On the Rise" is not the coolest part of the story. This is where the subway comes in. 

(BEGIN VIDEOTAPE) 

HERU PTAH, AUTHOR, "A HIP-HOP STORY": Now, surprisingly, Myra Pute (ph) preceded me and she already wanted to meet the man behind the poetry. This is my book right here. It's called "A Hip-Hop Story," first novel. My name is Heru Ptah. And I am the author of the great book "A Hip-Hop Story."

UNIDENTIFIED MALE: After the book came out, he started hitting the trains with it. He sold over 10,000 copies of the book on the subway. 

PTAH: I was 21 when I started writing "A Hip-Hop Story." It was inspired by "West Side Story," hence the title.But instead of rivaling gangs, we have rivaling hip-hop camps.Jenessy (ph) altered the path and rode the hip-hop tide, as rivaling labels had been doing for years before. Harold Incron (ph) and Tojano (ph), they had, to their discredit, previously stayed far away from it.My interest in hip-hop is that I'm a child of hip-hop. I'm born into their generation of music. Now, one man's madman is another's man martyr. But murder is murder. Slaughter is slaughter.This book right here is the original "Hip-Hop Story," which I self-published. This is a book that I laid out myself, mostly edited myself. I only had $100 left to my name after I published and printed "Hip-Hop" and really doubts of being broke. I was like, you know what? I'm just going to hit the trains. And I just went out there and I just sold. On the trains, I sold a little bit over 10,000 books. I would get on the train and I would just be like, yo, you know, young writer recently wrote and published my first novel. It's "A Hip-Hop Story." It's hottest book in the city right now. Six months from now, it's No. 1 in the country, one year from now, No. 1 in the world. You see me here today. Tomorrow, you see me on "Oprah."It was on one of those days I got the A-train in the last car, and I gave my spiel. And the person who bought the last copy was a director of publisher of MTV Books.

 JACOB HOYE, DIRECTOR OF PUBLISHING, MTV BOOKS: It was his charisma. It was his rap, essentially. I was really impressed. So I said, well, let me check out a copy. And the next morning, I came in and I said, we've got to do this book. Whatever we do, we've got to publish this book. 

PTAH: You can silence the lambs, but you can't step to a god. I've been lecturing before Lecter. 

HOYE: It's doing great. We're in our third printing. We're over 20,000 copies shipped, which, for a first novel in today's marketplace is tremendous. 

PTAH: There's a lot of talk right now for a "Hip-Hop" movie. Some very big people are really interested. I never learned to dream small, so why not? I mean, shoot, I was just selling on the train a year ago, so who knows what I'll be doing next year. 

(END VIDEOTAPE) 

COOPER: Let's hope Oprah is listening. Ahead on the program, we're going to update you on our top story and preview tomorrow. We'll be right back. 

(COMMERCIAL BREAK) 

COOPER: Here's a quick look at our top story.In Spain, the horrible task of identifying nearly 200 bodies continues in the wake of this morning's devastating terrorist attack, 10 explosions on three trains during Madrid's early morning commute. The bombs were in backpacks. It is the worst terror attack in Spain's history, the worst in all Europe since the bombing of Flight 103 over Lockerbie, Scotland. Spanish officials believe the chief suspect is a Spanish terror group, but many questions remain about that. Tomorrow on NEWSNIGHT, Aaron Brown reports live from Qatar, his first report from the region nearly a year after the war in Iraq. He will be at the U.S. military command center, the brains of the invasion where everything came together. That is tomorrow. And before we go, here's Bill Hemmer with a look at what's coming up tomorrow on "AMERICAN MORNING."

(BEGIN VIDEO CLIP) 

BILL HEMMER, CNN ANCHOR: Anderson, thank you. Tomorrow here on "AMERICAN MORNING," a strange case of a man trying to prove his innocence. He has long believed he was responsible for the driving death of a friend. Now comes a law student with a hunch to investigate. Was the guilty man wrong? The student tells us how she hopes a convicted man may walk free. We'll check it out tomorrow on a Friday edition of "AMERICAN MORNING," 7:00 a.m. Eastern time. Hope to see you then -- Anderson.

(END VIDEO CLIP) 

COOPER: Bill, thanks very much.That's NEWSNIGHT for tonight. Thanks for watching.Tomorrow, Aaron Brown, as we said, begins his series of reports from the Middle East, as we approach the first anniversary of the start of the Iraq war. It is hard to believe it has nearly been a year. I'm Anderson Cooper. Thanks for joining me. I hope you will join me tomorrow at 7:00 p.m. Eastern time for "ANDERSON COOPER 360." Up next for most of you, my good friend and colleague Lou Dobbs.Good night.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com